Shaw blasts former Gov't for alumina contract inked between Jamalco, Glencore

Members Login

Chatbox

Please login or register to participate in the chat

djromie (Mzja Dj) posted in:

Zambie , Attomatic Dam Sky - Squeeze (Raw) 2024

djromie (Mzja Dj) wrote
December 31st

blessed new year

tallboss876 wrote
November 16th

hail

dj brown posted in:

Zambie , Attomatic Dam Sky - Squeeze (Raw) 2024

djromie (Mzja Dj) wrote
October 15th

anyone dehya

djromie (Mzja Dj) wrote
October 15th

mi di ting up like7 again

Topic: Shaw blasts former Gov't for alumina contract inked between Jamalco, Glencore

Wide (rest of width)

Narrow (200px)

Garrick

MZ Super Veteran

Status: Offline

Posts: 6973

Date: 07:00 07/09 2008

Shaw blasts former Gov't for alumina contract inked between Jamalco, Glencore

Permalink

Minister of Finance and the Public Service Audley Shaw says the Government is renegotiating the forward-sales alumina agreement between the Jamalco Alumina Company and the overseas-based Glencore.

Shaw told reporters yesterday that the country was in more trouble because of what he called the bad alumina contract the previous government inked with Glencore.

The finance minister said that under the agreement, the People's National Party (PNP) government advanced the collection of earnings for alumina, but, based on the terms of the contract, alumina was now being supplied to Glencore far below market rate.

In fact, Shaw said so bad was the contract that the rate at which the product was now being supplied was even below the actual production cost.

According to Shaw, when the former administration entered the forward-sales alumina agreement, it made no allowance for any increase in energy or production costs.

Since then, Shaw said the value of alumina has spiked and Jamaica has not been able to benefit because it is locked into the contract until 2012.

Energy cost

"In the period since that agreement was entered into, you have the energy cost more than doubling and you have the demand coming from India and China that has caused the price to shoot up," he said.

Shaw said this has prompted Prime Minister Bruce Golding and the minister with responsibility for energy to intervene in the matter.

Yesterday, a senior official in the bauxite sector told The Gleaner/Power 106 News Centre that the attempt to renegotiate the forward-sales contract with Glencore was far advanced.

He argued, however, that Shaw's comments at this time were unfortunate because they could affect the process.

The Government was able to collect advance earnings from Jamalco's alumina sales to Glencore because it was part-owner of the local company.

__________________